Binance has made the decision to exit the Netherlands following an unsuccessful attempt to obtain a license to operate in the country. The Dutch regulator requires companies offering digital asset services to obtain a Virtual Asset Service Provider (VASP) license.
According to reports, Binance was unable to come to an agreement with Dutch regulators regarding the anti-money laundering (AML) guidelines.
As a result, users in the Netherlands can only withdraw their funds from the platform but are unable to initiate any trades.
Binance has responded to the current state of its relationship with users by announcing that new users from the Netherlands will no longer be able to create accounts on the platform. Effective July 17, 2023, existing Dutch resident users will only have the option to withdraw their assets from Binance.
Purchases, trades, and deposits will no longer be possible. Users were advised to transfer funds from their accounts, as Binance expressed regret in announcing its departure from the Dutch market.
Binance, MiCA, and US
Despite leaving the Netherlands, this crypto exchange maintains the largest presence of any in Europe, holding licenses in France, Spain, Italy, and more. Additionally, Binance has acquired licenses in Dubai, Thailand, and Kazakhstan.
The exchange made the decision to depart from Cyprus in order to concentrate on the larger EU market and align with the MiCA rules established by the EU. MiCA, a regulatory framework developed by the EU over the past few years, outlines the operating guidelines for digital asset providers in the region.
In the US, Binance has faced a significant crackdown, with the SEC suing both the company and its founder, CZ, for illegal operations within the country.
The crypto market has recently faced several negative developments. For instance, Coinbase and the SEC have been involved in cases, and platforms like Robinhood have delisted certain crypto tokens.
These actions were prompted by the SEC’s claim that tokens such as ADA, SOL, and Matic should be classified as securities.